SERVICE DISRUPTION

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It’s different this time. Really!

By: Chad Williams Chairman & Founder

As everyone knows by now, the price of gold has reached all time highs. The rise has been relentless. It’s broad based, global. The buyers are strong. Retail demand is good, but that’s not the major source of the buying. It’s central banks and large institutions. Feels almost like the most powerful buyers in the world have all agreed to buy gold. The wave has been stunning. It certainly feels different this time.

The USD price of gold is a measurement of the health of the US financial system. What we are witnessing is the steady erosion of the power of the US. The transition away from the US to other jurisdictions, notably China. It’s happened to every super-power in history: Britain, France, Spain, and so on. There will be corrections of course: the price of gold won’t just go up. At the time of writing this article, the technical charts are flashing overbought in bullion and just about every gold stock. However, any correction will simply be a buying opportunity. There is no stopping this bullion train for many years.

Silver has also performed well. Silver is not really a reserve commodity since it’s simply too bulky to store per unit value, so silver’s price moves appear to be thinner in demand.

Here we see substantial retail buying. That’s OK! No surprise there. Silver is just doing what it should be doing. Without doubt, the silver:gold ratio will get closer to the usual 65:1 rather than >100:1 over the past year. Silver just needs some time to catch up. Like the famous turtle, it will beat the golden rabbit at some point. Patience is required.

Copper and uranium have also done very well. No surprise there. Same can be said about rare earth companies and now even lithium has joined the party.

We continue to believe that virtually every mined commodity will appreciate in value over the next 5 years or so. Currency depreciations will certainly explain a good chunk of the price appreciations, but the biggest factors are that capital investment/ exploration spending have not been where  they  should  have  been  for

50 years. Permitting new projects is nearly impossible. And don’t forget that the entire global mining industry is understaffed. And has been so for decades. None of these issues can be solved overnight. Enjoy the wave of higher mineral prices for many years. It’s a tsunami.

Bruce Tatters, CFA

Chief Executive Officer

Mr. Tatters joined Red Cloud in 2018, bringing more than 24 years of senior capital markets leadership. Mr. Tatters was the co-founder at both Triumph Asset Management as Chief Investment Officer and Westwind Partners as Managing Director, Institutional Equities. Prior to that, Mr. Tatters was Global Co-Head of Institutional Equity Sales at National Bank Financial (successor to First Marathon Securities). At First Marathon Securities, he spent six years as an Institutional Equity Salesperson and two years in equity research. Mr. Tatters began his career in equity research at Burns Fry Ltd. Mr. Tatters holds a CFA designation and a bachelor’s degree in Economics from the University of Western Ontario. 

Michael Mackasey

Chairman

Mr. Mackasey has over 40 years’ experience in the capital markets, having held senior positions at both Canadian and international investment banks, most recently as Vice Chairman at Macquarie Capital Markets Canada. Mike has provided advice to and has managed financings for a great number of corporations, both large and small. Mike has a long history in financing emerging resource companies and is very cognizant of both the challenges and opportunities that they face.

In addition to his role in the capital markets, Mike acted as Chair of the Board of the Canada Development Investment Corporation (CDEV) a federal Crown Corporation charged with managing the commercial assets of the Government of Canada

Mike has a B.Comm from McGill University and an MBA from the Ivey School of Business. He also holds a Diploma from the Institute of Corporate Directors (ICD.D).

Bob Sellars

Senior Vice President and Chief Financial Officer

Robert (Bob) Sellars joined Red Cloud in June 2021, bringing more than 40 years of experience in capital markets and financial services to the table, including his significant roles on investment industry committees within IIROC . For 21 years Mr. Sellars served as Chief Financial Officer & Executive Vice President for Dundee Corp. and Dundee Securities and is known for his tenure as First Marathon’s CFO for over a decade; among other C-Suite roles in the sector during his career. Mr. Sellars is a Chartered Professional Accountant (CPA), Chartered Accountant (CA), Chartered Financial Analyst (CFA) and received an MBA from the University of Windsor.